The question to ask yourself is whether this employee is costing you loss income and is terminating her the lesser of two evils (the other is paying unemployment). What you may want to do is giving her written letters of reprimand. In some cases, you may want her to acknowledge receiving the letter (signature of initial). Once you have documentation of deliberate bad behavior and if you subsequently terminate her employment, then you may have evidence of misconduct that may bar her from receiving unemployment. Finally, see an attorney for more on-point advice. Remember, don't be penny wise and pound-foolish when it comes to legal advice. Good luck and I am available for consultation on such matters.

Based on what you have written, it appears that you have tried coaching and counseling your employee, so there is really not much more you can do except end her employment with you. You can contest her application for unemployment compensation, and you may win but it probably will not make a substantial difference to your UC contribution rate. New Jersey is expected to continue raising the rate for all employers due to a need to replenish the UC fund.

If you do end this person's employment, make sure you are doing it for performance-related reasons. You should talk to an attorney experienced in employment law before taking any action, to make sure that your reason and method of termination do not result in a violation of state or federal laws in this area. Feel free to call my office if you would like to discuss this matter in greater detail.